Bundesbank VP vows support removal will be staggered

FRANKFURT Nov 13 (Reuters) - The Vice President of Germany's central bank has vowed that the removal of measures put in place to support the euro zone's financial system through the crisis would be staggered to give banks time to adjust.

"The emergency measures brought in by the central banks were never meant to be permanent, otherwise you would risk blowing another credit bubble in financial markets," Bundesbank number two, Franz-Christoph Zeitler, said in an interview with German paper Die Welt published on Friday.

"Therefore the eurosystem will decide on an exit from these support measures when the time is right. This will not happen all at once so that the institutes have time to prepare themselves."

He also warned that banks face a tough time next year.

"The coming year we will see a gradual economic recovery, however, 2010 will be a difficult year for the banking sector.

"Banks are struggling with value adjustment of credit, the big post-war recession is now arriving on companies' balance sheets. This will have a negative impact on credit institutions over the next half a year," he said.

Last week European Central Bank President Jean-Claude Trichet signalled the ECB would take the first step to withdraw its support measures in December, hinting that it would not offer one year lending next year. [ID:nL5403327] (Reporting by Marc Jones; Editing by Andy Bruce)